On September 25, 2026, Rhetan TMT Limited (BSE: 543590 | NSE: RHETAN) has successfully executed a Memorandum of Understanding (MOU) with Bajaj Tubular Products Private Limited, Pune. According to latest reports, the framework contemplates the proposed procurement of approximately 20,000 metric tons (MT) of TMT bars over 24 months, to be executed through individual purchase orders linked to actual business and project requirements. Management has assessed a broader indicative commercial potential of ₹250–300 crore over the same horizon, subject to order conversion, product mix, market realizations, and mutual agreement on additional business. The counterparty, Bajaj Tubular Products Private Limited, is engaged in the trading and supply of steel tubular products, infrastructure raw materials, iron/steel ingots, and iron pipes.
The stock market responded positively to the MOU announcement, with Rhetan TMT shares rising 4.94% to hit upper circuit on September 28, 2026. The stock closed at ₹15.93 per share with a market capitalization of ₹1,269.42 crore, despite broader market weakness as BSE Sensex declined 1.52% to 72,771 points. The stock touched an intraday high of ₹15.93 and low of ₹14.43 during the trading session. However, the stock has shown mixed performance over longer periods, declining 35.64% in six months and 25.18% in one year, though it has surged nearly 5.5% in one year and around 65% in three years.
This development arrives against a backdrop of earlier 2026 initiatives that signal an intentional push toward higher utilization and cost competitiveness. As reported by Investing.com India, the company successfully commenced power generation from a 1 MW captive ground-mounted solar project at the Kadi facility in mid-to-late August 2026. Additionally, the Board approved expansion of manufacturing capacity from 45,000 MTPA to 75,000 MTPA, and the company secured BIS certifications for higher-grade Fe500D, Fe550, and Fe550D TMT bars. The company also increased borrowing limits to ₹300 crore to support its growth initiatives.
The company's latest quarterly results demonstrate strong profitability growth despite revenue challenges. As reported by Investing.com India, net profit for Q1 FY27 increased 315.7% YoY to ₹3.16 crore, while operating revenue declined 19.3% YoY to ₹4.06 crore. This performance reflects the company's focus on operational efficiency and cost management, with the significant profit growth indicating improved margins and effective cost control measures.
Shalin A. Shah, Managing Director of Rhetan TMT Limited, expressed the company's strategic rationale for the partnership. As reported in the BSE filing, Shah stated that "This MOU reflects our efforts to broaden our business relationships and engage with established players in the steel and infrastructure ecosystem. The proposed arrangement with Bajaj Tubular Products provides an opportunity to build a structured and sustained commercial association, while enabling us to explore additional business opportunities over the 24 month period." The MOU includes provisions for mutual agreement on broader relationship aspects, expected product mix, potential order frequency, prevailing and anticipated market realizations, and scope for additional business opportunities.
The 24-month commercial framework establishes a structured approach for ongoing business collaboration. Supplies will be executed through individual, mutually accepted purchase orders outlining specific grades, sizes, delivery schedules, and prevailing market pricing. The MOU includes a 30-day termination clause allowing either party to exit with written notice, without affecting accepted purchase orders. This flexible structure enables both parties to adapt to changing market conditions while maintaining the foundation for long-term business relationships.
